NIC Asia Bank Limited, Global IME Bank Limited, and Nepal Investment Mega Bank Limited have been taken into action for allegedly acting contrary to the Nepal Rastra Bank Act and Integrated Directives.
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Nepal Rastra Bank has taken action against three commercial banks. NIC Asia Bank Limited, Global IME Bank Limited and Nepal Investment Mega Bank Limited have been taken action for allegedly acting against the Nepal Rastra Bank Act and Integrated Directives.
'NIC Asia Bank Limited has been publishing financial statements in violation of the directives issued by the Nepal Rastra Bank and has not complied with the written orders issued to the bank, and therefore, the then Chairman of the Board of Directors of the bank, Tulsiram Agrawal, and the then Chief Executive Officer, Roshan Kumar Neupane, have been fined Rs 200,000 each as per Section 100 Sub-section 2 (c) of the Nepal Rastra Bank Act, 2058 (including the second amendment, 2073),' the details of the action taken during the second quarter of the current fiscal year made public by the Nepal Rastra Bank today stated.
Similarly, the Chief Executive Officer of the bank has been warned after the on-site inspection report of Global IME Bank Limited, 2082, was found to be unsatisfactory. It is stated that Global Bank has been warned for not maintaining adequate loan loss provisions as per the provisions of the Integrated Directive 2081 issued by the Nepal Rastra Bank to banks and financial institutions and for not fully complying with the provisions related to loan rescheduling and restructuring. During the on-site inspection of the bank, the Rastra Bank has stated that it was found that the repaid loan in the 'core banking software' could be recreated by keeping it in the old 'value debt'.
Similarly, Nepal Investment Mega Bank Limited has stated that it did not secure the loan by not obtaining the customer's signature on the loan-related documents and disbursed more loans than the security provided, contrary to the instructions issued by the Rastra Bank.
The Rastra Bank has stated that action has been taken for maintaining an interest rate difference of more than two percentage points for loans of the same nature and disbursing new short-term loans in the last months of the quarter, contrary to the provisions of the Working Capital Loan Guidelines, 2079 BS. As a result, the bank's board of directors and chief executive officer have been warned.
